Bitcoin (BTC) tapped $89,000 during the early Asian hours on Feb. 26 after reaching a low of $85,953 on Feb. 25 amid a slight improvement in market sentiment.
A rejection from the $89,000 level raises questions about whether BTC price could drop further over the next few days.
BTC/USD hourly chart. Source: Cointelegraph/TradingView
Demand for Bitcoin remains subdued
Bitcoin’s “apparent demand” remains low, implying a decline in risk appetite for potential investors, according to data from market intelligence firm CryptoQuant,
What to know:
Apparent demand is the difference between production and changes in inventory.
For Bitcoin, production refers to mining issuance, while inventory refers to inactive supply for over a year.
If production exceeds inventory reduction, it indicates that apparent demand is weakening.
Bitcoin’s apparent demand dropped from 279,000 BTC on Dec. 4 to 10,000 on Feb. 26.
On Feb. 25, the metric turned negative for the first time since September 2024.
This reflects the decline in short-term holder or retail demand and aligns with the broader trend of decreasing macro liquidity.
If the trend continues, the price could dip lower, just as it happened between June and July when BTC dropped a further 22% to $53,000.
Bitcoin apparent demand. Source: CryptoQuant
However, such periods have historically led to buying opportunities.
This metric is at levels seen in mid-January 2024 and late October 2025 before BTC price rallied 76% and 73%, respectively, hitting new all-time highs on both occasions.
Related: Crypto market is seeing a ‘tactical retreat, not a reversal’ — Binance CEO
Key Bitcoin price levels to watch under $90,000
Bitcoin finally breached the $90,000 level on Feb. 25 for the first time since Nov. 18, 2024.
Traders are now focused on key areas below this level, which BTC might revisit if the ongoing bearishness persists.
Notably:
Bitcoin’s first area of interest remains between its previous range low at $85,000 (formed on Nov. 12) and the $87,000 support level.
BTC will potentially target the liquidity cluster inside this range if support at $87,000 is lost.
An immediate reprieve for the bulls would be a sharp reversal from this range, which will indicate buying interest below $90,000.
Otherwise, BTC could potentially test the fair value cap between $80,500 and $85,000, formed during the initial “Trump Pump” rally.
Note that the 100-day simple moving average sits within this range, suggesting a strong demand zone just above $80,000.
BTC/USD daily chart. Source: Cointelegraph/TradingView
The chart above also shows that the daily CME gap remains between $77,000 and $80,000, which is BTC’s worst-case scenario, according to some analysts.
The $80,000 level “represents a strong support zone” for Bitcoin, CryptoQuant author Axel Adler Jr said in a Feb. 26 post on X.
According to the analyst, this level represents a 15% deviation from the short-term holder (STH) cost basis (currently at $91,600), which has historically provided strong areas of rebound once the price touches it.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
